Coll Materials closing Allentown plant

Mike Verespej

Published: October 24, 2012 6:00 am ET

Related to this story

Topics Sustainability, Materials, Pipe/Profile/Tubing, Recycling, Suppliers

ZANESVILLE, OHIO (Oct. 24, 4 p.m. ET) — Recycler Coll Materials Exchange LLC is closing its Allentown, Pa., facility and consolidating those operations into its Zanesville headquarters plant.

“We’re doing that because we’re getting into another venture in the Southeast — in North Carolina — by the end of the year,” said President and CEO Brian Coll in an Oct. 24 phone interview. “We are buying a company in North Carolina that does plastics recycling.

“It doesn’t make sense to have plants in Pennsylvania, Ohio and North Carolina,” he said. “So we are slowing that plant down and are going to consolidate it into the Ohio facility” sometime in the next 3-6 months.

Brian Coll denied a rumor that the company’s $6 million Waco, Texas, plant — which opened about one year ago — was closing.

“We have no intention of closing that factory,” said Coll, who was on his way back from Allentown after telling the employees Oct. 23 of the impending plant closing.

However, he did tell Plastics News that the Waco plant stopped making composite railroad ties from recycled plastics for Axion International Holdings Inc. six weeks ago. But Coll said the Waco plant, which has 25 workers, continues to make post-consumer pellets, roughly 500,000 pounds per week — the majority of it high density polyethylene.

An executive at Providence, N.J.-based Axion confirmed that the Waco extrusion line for making railroad ties was shut down at the current time. But he added that “we have no permanent plan to keep it shut down.”

At the present time, “we do buy some material from them,” he said. “But we manufacture out of a number of places” and it makes more sense right now for those ties to be manufactured elsewhere.

Just as it does with its other contract manufacturers, he said Axion is “looking at Waco constantly and looking at the type of relationship” Axion should have with that plant.

Coll Materials had hoped to add a second extrusion line this year for railroad ties at Waco, but that has not occurred. Brian Coll declined to comment on the three-year contract between Axion and Coll, which the two firms inked 16 months ago.

The Waco plant has the capacity to produce 122 million pounds of recycled materials annually and has two wash lines, a dry line, three eight-inch extruders to make pellets, four granulators and fiber separation operations. But based on its current output, the plant is producing, on a projected annual basis, 26 million pounds per year.

Coll said the company’s Zanesville plant is reprocessing 55 million pounds annually.

He said $7 million worth of equipment — wash lines, grinders, extruders, pelletizers and metal separation equipment — from the Allentown plant would move into the Zanesville plant.

The plant in Allentown opened late last year after a fire in August destroyed the Nicos Polymer plant in Nazareth, Pa., that Coll had acquired in February 2011 after Nicos went into bankruptcy.

Coll said that workforce — once as high as 65 — now is down to what he called “a skeleton crew” of 15 people as the plant is currently only doing tolling.

In an interview at its headquarters in Zanesville in February, Coll Materials said it had invested $12 million to $13 million in equipment for its Allentown, Pa., plant.

Coll Materials has grown from a $4 million company in 2009 to what Brian Coll says is a $55 million to $60 million company — which he believes will continue to grow, even though it is shuttering the Allentown plant and putting on hold its plan to expand into the Pacific Northwest.

“We are in the middle of refinancing our debt to bring more liquidity into this business,” Coll said. “That should be completed by the end of next month and free up cash and credit — which will help us continue to grow.”


Comments

Coll Materials closing Allentown plant

Mike Verespej

Published: October 24, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Dunkin' Donuts looking at PP to replace foam cups

September 19, 2014 3:22 pm ET

Dunkin' Donuts is testing a new polypropylene coffee cup that the company believes could help boost recycling.    More

Image

Hong Kong's TK eyes expansion, may buy Nypro Tool operation

September 19, 2014 2:49 pm ET

Hong Kong-based mold maker and plastics processor TK Group (Holdings) Ltd. said it's reached a tentative agreement to buy a tooling factory in...    More

Image

Foster building medical polymers plant

September 19, 2014 1:39 pm ET

Foster Delivery Science is investing $8 million in a new plant in Putnam, Conn., for production of medical polymer blends, as well as rods, film or...    More

Image

BP to restart damaged PTA unit in limited capacity by November

September 19, 2014 10:27 am ET

British Petroleum plc may restart its fire-damaged purified terephthalic acid (PTA) feedstock unit in South Carolina in late October or early...    More

Image

Bayer spinning off plastics business

September 18, 2014 8:49 am ET

Bayer AG will spin off its MaterialScience plastics group into a separate, publicly-traded company within the next 12 to 18 months.    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events